JAIPUR: As Rajasthan Housing Board (RHB) increased the price of the land with effect from Jan 1, appreciation rates of other real estate ventures in the city are expected to witness a sharp rise this year.
Real estate firms are keeping a close watch on how the new rate chart would impact the rate of undergoing projects of the housing board and would increase the rates of their projects accordingly.
“If RHB projects in the Indira Gandhi Housing Scheme (IGHS) see a steady rise owing to the newly announced rate chart, it is quite expected that other private projects in and around the Jagatpura area would also increase proportionately. In all, the step by the RHB would have an impact on the real estate appreciation rate of the entire city,” said Prakash Jain, a real estate developer from Jaipur.
Recently, the RHB has raised land prices in over 170 housing schemes across more than 15 districts, including Jaipur and Jodhpur. Prices have increased by 8.50 to 26 percent. In the Indira Gandhi Housing Scheme in Jagatpura, Jaipur, the price per square meter is now Rs 17,875. This means that a plot of land measuring 100 square metre will cost approximately Rs 17,87,500 – a rise of over 23 percent.
“We had increased the price of the land keeping in view the cost of our high-income group (HIG) and middle income group (MIG) projects. In the last five years the board has generated a huge revenue and has started constructing ‘quality’ projects. This means, we are now entitled to accelerate the price of our projects that are of superior quality,” said a RHB official.
Real estate developers stated with the housing board improving the quality of construction the private developers also need to further improve their qualities to keep pace with time. Else more and more people would concentrate only on housing board ventures as cost of the projects are still much lower than the rates offered by the private developers.
“We may see an increase of 10-12% more than the normal appreciation rates for real estate projects in Jaipur, this year. However, real estate companies need to be very careful about the quality of construction and additional facilities generally offered in major residential complexes,” said Avishek Sanghvi, from a real estate group.
